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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
SCHOOLS (105 ILCS 5/) School Code. 105 ILCS 5/34-24
(105 ILCS 5/34-24) (from Ch. 122, par. 34-24)
Sec. 34-24.
Numbering of warrants - Setting apart taxes - Interest.
Warrants drawn and issued under Section 34-23 shall be numbered
consecutively in the order of their issuance and shall show upon their face
that they are payable solely from said taxes when collected, and not
otherwise, and that payment thereof will be made in the order of their
issuance, beginning with the warrant having the lowest number, and shall be
received by any collector of taxes in payment of taxes against which they
are issued. Such taxes against which the warrants are drawn shall be set
apart and held for their payment, as herein provided. Such warrants shall
bear interest, payable out of the taxes against which they are drawn, at
the rate of not to exceed the maximum rate authorized by the Bond Authorization
Act, as amended at the time of the making of the contract,
if issued before
July 1, 1971 and if
issued thereafter at the rate of not to exceed the maximum rate
authorized by the Bond Authorization Act, as amended at the time of the
making of the contract, from the date
of their issuance until paid, or until notice is given by publication in a
newspaper or otherwise that the money for their payment is available and
that they will be paid on presentation.
Reissued warrants shall bear the index numerical designation of the
original warrant, shall be subnumbered consecutively in the order of
reissuance, and shall be paid in the direct order of reissuance, beginning
with the earliest subnumber. All warrants so reissued shall be paid prior
to the payment of any warrant, or any reissuance thereof, issued
subsequently to the date of issuance of such original warrant and in
anticipation of the collection of the same tax.
Any such outstanding warrants may be paid in the order of their
issuance, beginning with the warrants having the lowest number.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of
power to issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be or to have
been more restrictive than those Acts, (ii)
that the provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond
Acts,
and (iii) that instruments issued under this
Section within the supplementary authority granted by the Omnibus Bond Acts
are not invalid
because of any provision of this Act that may appear to be or to have been
more restrictive than those Acts.
(Source: P.A. 86-4.)
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105 ILCS 5/34-25
(105 ILCS 5/34-25) (from Ch. 122, par. 34-25)
Sec. 34-25.
Use
of special funds to purchase tax anticipation warrants - Payment.
Any board holding in its treasury any fund set aside for use for some
particular purpose that is not immediately necessary for such purpose may
by resolution adopted by a vote of a majority of the full membership of the
board use the money in such fund, or in the aggregate of such funds if
there may be more than one, in the purchase of tax anticipation warrants of
the board ordered issued by the city council of such city at the request of
said board of education. Such warrants shall bear interest not to exceed
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract. All interest on such warrants and
all moneys paid in redemption
or received from the resale thereof shall at once be credited to and placed
in such fund so held by the board. No board, however, so using any of its
own funds for the purchase of tax anticipation warrants shall apply to the
payment thereof while so held by it any taxes against and in anticipation
of which such warrants have been issued, unless and until all warrants and
the interest thereon, issued by the board against and in anticipation of
the same taxes and sold to other purchasers at public or private sale, and
all bonds, together with interest thereon, issued pursuant to the
provisions of this Act, have been first paid or moneys sufficient for the
payment thereof have been deposited with the treasurer of the board as a
special fund to be held and used solely for the purpose of paying such
warrants and bonds with interest thereon when presented. This section does
not prevent the resale or reissue of any warrants as provided in Section
34-26.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of
power to issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be or to have
been more restrictive than those Acts, (ii)
that the provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond
Acts,
and (iii) that instruments issued under this
Section within the supplementary authority granted by the Omnibus Bond Acts
are not invalid
because of any provision of this Act that may appear to be or to have been
more restrictive than those Acts.
(Source: P.A. 86-4.)
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105 ILCS 5/34-26
(105 ILCS 5/34-26) (from Ch. 122, par. 34-26)
Sec. 34-26.
Resale of tax anticipation warrants-Sale of new warrants.
If it is deemed necessary or expedient to convert into money any tax
anticipation warrants issued and purchased by public funds pursuant to
Section 34-25 before the receipt of taxes in anticipation of which the
warrants were issued, the board by resolution adopted by a vote of a
majority of its entire membership may authorize a resale of such warrants
and adjust the interest rate thereon, or as permitted by statute may
authorize the issuance and sale of a like principal amount of new warrants
for the same purpose and in anticipation of the same taxes as the original
warrants were issued and bearing any date subsequent to the date of the
original tax anticipation warrants, the new tax anticipation warrants to be
of the denomination and bear such interest not to exceed the statutory
rate, all as may be authorized by such resolution. Upon the delivery of the
new tax anticipation warrants, a like principal amount of such original
warrants that were issued against the same tax that is anticipated by the
new warrants shall be paid and cancelled and the proceeds of the sale of
the new tax anticipation warrants shall be used first to restore to the
funds so invested in the original tax anticipation warrants money
equivalent to the par value and accrued interest of the original tax
anticipation warrants and the balance, if any, shall revert to the fund for
the creation of which the tax so anticipated was levied. Warrants so resold
or reissued shall have the same incidence of priority with respect to
payment and shall be paid in the same manner as other warrants issued in
anticipation of the same tax and sold in the first instance to any
purchaser other than the issuing board of education.
(Source: Laws 1961, p. 31 .)
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105 ILCS 5/34-27
(105 ILCS 5/34-27) (from Ch. 122, par. 34-27)
Sec. 34-27.
Use
of special funds to purchase outstanding bonds.
If the board has in its treasury any fund set aside for some particular
purpose that is not immediately necessary for such purpose, it may by
resolution adopted by a majority of its full membership use the money in
such fund in the purchase of bonds issued by the board representing an
obligation and pledging the credit of the board, and all interest upon such
bonds and all moneys paid in redemption of the bonds or realized from the
sale thereof shall at once be credited to and placed in such fund.
(Source: Laws 1961, p. 31.)
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105 ILCS 5/34-28
(105 ILCS 5/34-28) (from Ch. 122, par. 34-28)
Sec. 34-28.
Investment of school funds.
Investments of school funds shall be
made by the board of education only in Federal Government, State or municipal
securities the payment of which is protected by the power to levy taxes
therefor or in certificates of deposit constituting direct obligations of any
savings and loan association, or any bank as defined by the Illinois Banking
Act, as heretofore and hereafter amended, provided, however, that such
investments in certificates of deposit may be made only in those banks which
are insured by the Federal Deposit Insurance Corporation or in withdrawable
capital accounts or deposits of State or Federal chartered savings and loan
associations which are insured by the Federal Savings and Loan Insurance
Corporation.
No bank or savings and loan association shall receive public funds as
permitted by this Section, unless it has complied with the requirements
established pursuant to Section 6 of "An Act relating to certain investments
of public funds by public agencies", approved July 23, 1943, as now or
hereafter amended.
(Source: P.A. 86-1028.)
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105 ILCS 5/34-29
(105 ILCS 5/34-29) (from Ch. 122, par. 34-29)
Sec. 34-29.
Audit of accounts.
The board shall for each fiscal year and may as often as necessary,
appoint certified public accountants to examine the business methods and
audit the accounts of the board as of December 31, 1972, as of December 31,
1973, as of August 31, 1974, as of August 31 of each year
thereafter through August 31, 1996, as of June 30, 1997, and as of June 30 of
each year thereafter,
and a report thereof, together with any recommendations of such accountants
as to changes in business methods of the board or any of its departments,
officers or employees shall be made to the mayor, the city council, and the
board and be filed in the records of the board. The
board shall prepare
and publish an annual report including in detail all receipts and
expenditures, specifying the source of the receipts and the objects of the
expenditures, and shall transmit it to the mayor and the city council. The
board shall account for the expenses of each fiscal year but shall not be
required to make any apportionment of such expenses between the two
separate levies made during each calendar year.
(Source: P.A. 89-15, eff. 5-30-95.)
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105 ILCS 5/34-29.1
(105 ILCS 5/34-29.1) (from Ch. 122, par. 34-29.1)
Sec. 34-29.1.
General obligation notes - Limitations - Issuance -
Tax levy - Tax rate - Reimbursement to working cash fund. The
board may incur an indebtedness by the issuance of full faith and
credit general obligation notes in an amount not to exceed 85% of the
taxes levied for educational purposes, building purposes and the
purchase of school grounds, free textbook purposes and for school
playground and recreation purposes respectively, in the fiscal year in
which said notes are issued, without the submission to the electors of
the school district or city for approval of the question of the issuance
of such notes, provided, however, no notes shall be issued when there
are outstanding tax anticipation warrants issued or to be issued against
such taxes, nor shall such full faith and credit general obligation
notes, tax anticipation warrants, or amounts transferred from the
working cash fund, in the aggregate, exceed 90% of the taxes
levied for the aforesaid purposes. Such notes shall bear interest at a
rate of not to exceed
the greater of (i) the maximum rate authorized by the Bond Authorization Act,
as amended at the
time of the making of the contract, or (ii)8% per annum, and shall mature
within 2 years from date.
Whenever the board desires to issue such notes as herein authorized,
it shall adopt a resolution designating the purposes for which the
proceeds of the notes are to be expended and fixing the amount of the
note proposed to be issued, the maturity thereof, and optional
provisions, if any, the rate of interest thereon, and the amount of
taxes to be levied annually for the purpose of paying the interest upon
and the principal of said notes.
Said notes shall be issued in the corporate name of the school
district. They shall be signed by the president and secretary of said
board. They shall be sold by the board
upon such terms as may be approved by the board, and the proceeds
thereof shall be received by the city treasurer, as school treasurer,
and expended by the board for the purposes provided in the resolution
authorizing any such notes.
Before or at the time of issuing any notes herein authorized,
the board shall, by resolution, provide for the levy
and collection of a
direct annual tax upon all the taxable property of such school district
sufficient to pay and discharge the principal thereof at maturity and to
pay the interest thereon as it falls due. Such tax shall be levied and
collected in like manner with the other taxes of such school district
and shall be in addition to and exclusive of the maximum of all other
taxes which such board is now, or may hereafter be,
authorized by law to levy for any and all school purposes. Upon the
filing in the office of the county clerk of the county wherein such
school district is located of a duly certified copy of any such
resolution, it shall be the duty of such county clerk to extend the tax
therein provided for, including an amount to cover loss and cost of
collecting said taxes and also deferred collections thereof and
abatements in the amounts of such taxes as extended upon the collector's
books. The resolution shall be in force upon its passage.
After any such notes have been issued and while such notes are
outstanding, it shall be the duty of the county clerk wherein such
school district is located in computing the several tax rates for the
several purposes respectively for which the notes have been issued
respectively to reduce said tax rates respectively levied for such
purposes respectively by the amount levied to pay the principal of and
interest on such notes respectively to maturity, provided the tax rate
for educational purposes shall not be reduced beyond the amount
necessary to reimburse any money borrowed from the working cash fund,
and it shall be the duty of the secretary of the board annually, not
less than thirty (30) days prior to the tax extension date, to certify
to the county clerk of the county wherein such school district is
located the amount of money borrowed from the working cash fund to be
reimbursed from the educational purposes tax.
No reimbursement shall be made to the working cash fund until there
has been accumulated from the tax levy provided for the notes issued for
educational purposes an amount sufficient to pay the principal of and
interest on such notes as the same become due.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of Public
Act 86-4 (June 6, 1989), it is and always has been the
intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been
supplementary grants of power to issue instruments in accordance with the
Omnibus Bond Acts, regardless of any provision of this Act that may appear
to be or to have been more restrictive than those Acts, (ii) that the
provisions of this Section are not a limitation on the supplementary
authority granted by the Omnibus Bond Acts, and (iii) that instruments
issued under this Section within the supplementary authority granted
by the Omnibus Bond Acts are not invalid because of any provision of
this Act that may appear to be or to have been more restrictive than
those Acts.
(Source: P.A. 86-4; 86-930; 86-1028.)
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105 ILCS 5/34-29.2
(105 ILCS 5/34-29.2) (from Ch. 122, par. 34-29.2)
Sec. 34-29.2.
Debt service funds for obligations.
(a) The board shall establish debt service funds, each to be maintained by a
corporate trustee (which may be any trust company or bank having the power of a
trust
company within the State) separate and segregated from all other funds and
accounts of the board, for those issues of obligations of
the board for the payment of which a separate tax has been or is to be levied,
including, without limitation, a debt service fund for the
general obligation bonds of the board, a debt service fund for the
general obligation notes of the board and a debt service fund for the lease
rentals payable by the board to the Public Building Commission of Chicago.
Such funds shall be established for each such outstanding obligation of
the board and also for each such obligation as shall be issued by the board
after the effective date of this amendatory Act of 1981. The trustee
maintaining
each such debt service fund shall account separately on its books and records
for each such issue of such obligations.
(b) The city treasurer, as ex officio treasurer of the board, shall, with
respect to each collection of taxes levied on behalf of the board, allocate
the amounts collected among the issues of such obligations
and deliver a report of such allocation to the county collector of each county
wherein the board is located. On the basis of such allocation, the county
collector shall pay the proceeds
of each separate tax levied for the payment of any issue of such
obligations upon receipt directly to the corporate trustee maintaining the
debt service fund for
such obligations for deposit in such debt service fund.
In addition, the board shall pay the amount of personal property tax replacement
tax revenues applicable to each issue of such obligations
upon receipt directly to the corporate trustee maintaining the debt service
fund for such obligations for deposit in such debt service
fund. Each such deposit shall be held in trust for the benefit of the party
or parties to whom payment of such obligations is payable.
All such proceeds of such taxes and revenues shall be applied solely for the
payment of the related obligations and shall not be used for
any other purpose until such obligations are paid in full.
Each levy of such taxes shall
be for the sole benefit of the party or parties to whom payment of such
obligations is payable and such party or parties
shall have a security interest in and lien upon all rights, claims and interest
of the board arising pursuant to any such
levy and all present and future proceeds of such levy until such
obligations are paid in full.
Such party or parties shall further have a security interest in and lien
upon all personal property tax replacement tax revenues upon deposit in
the appropriate debt service fund as above provided.
(c) Any lien or security interest for the benefit of the party or parties
to whom any such obligations are payable, made pursuant
to this Act, shall be valid and binding from the effective date of the
amendatory Act of 1980, and with respect to any obligations issued after
the effective date of this amendatory Act of 1981, shall be valid and binding
from the date of issue of such obligations, in each case without any physical
delivery or further act, and shall be valid and binding as against, and
prior to any claims of, all other parties
having claims of any kind in tort, contract or otherwise, against the board,
irrespective of whether such parties have notice thereof.
(d) Any monies on deposit in any such debt service fund and not necessary
for immediate use may be invested or reinvested in Investment Obligations,
as defined in Section 34A-103 of this Act.
The board may from time to time withdraw from any such debt service fund,
to the extent not prohibited by the resolution of the board authorizing
issuance of such obligations, the amount of interest or other
investment
earnings in such funds but only to the extent that the total amounts in such
fund
after
such withdrawal shall not be less than the requirements for that fund. Any
amounts deposited in any such debt service fund not required for payment of
principal of or interest on any obligation because that payment has been made
or provided for may be withdrawn by the board from the fund at any time, but
only to the extent that the total amount in the fund after the withdrawal is
not less than the requirements for the fund. The board is not required to make
any tax abatement with respect to any such amounts withdrawn or on account of
any provision for payment of principal of or interest on obligations. Any
amounts so withdrawn by the board may be used for any lawful purpose of the
board.
(Source: P.A. 88-511.)
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105 ILCS 5/34-29.3
(105 ILCS 5/34-29.3) (from Ch. 122, par. 34-29.3)
Sec. 34-29.3.
Transfer of excess funds.
When bonds are issued under
Sections 34-22 through 34-22.7, and the purposes for which the bonds have
been issued are accomplished and paid for in full and there remain funds
on hand from the bonds so issued, the board by resolution may transfer such
excess funds to the working cash fund.
(Source: P.A. 84-1334 .)
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105 ILCS 5/prec. Sec. 34-30
(105 ILCS 5/prec. Sec. 34-30 heading)
WORKING CASH FUND
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105 ILCS 5/34-30
(105 ILCS 5/34-30) (from Ch. 122, par. 34-30)
Sec. 34-30.
Establishment of fund authorized-Purpose.
The board may, by resolution, establish a fund to be known as a "working
cash fund" which shall be maintained and administered for the purpose of
enabling the board to have in its treasury at all times sufficient money to
meet demands thereon for ordinary and necessary expenditures for
educational purposes.
(Source: Laws 1961, p. 31.)
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105 ILCS 5/34-31
(105 ILCS 5/34-31) (from Ch. 122, par. 34-31)
Sec. 34-31.
Bond issue to increase fund.
(a). Where the board has created and is maintaining such a working
cash fund for the purposes above mentioned, it may, with the consent of
the city council expressed by ordinance, incur an indebtedness for the
purpose of increasing such fund and issue bonds therefor from time to
time, in an amount or amounts not exceeding in the aggregate
$75,000,000, exclusive of all bonded indebtedness authorized for that
purpose prior to May 16, 1967, without the submission thereof to the
electors of the school district or city for approval.
(b). The board may incur an additional indebtedness for the purpose
of further increasing such fund and issue additional bonds therefor,
from time to time, in an amount or amounts not exceeding in the
aggregate $20,000,000, exclusive of all bonded indebtedness authorized
for that purpose prior to the effective date of this amendatory Act of
1971, without the submission thereof to the electors of the school
district or city for approval.
(c). The board may incur an additional indebtedness for the purpose
of further increasing such fund and issue additional bonds therefor,
from time to time, in an amount or amounts not exceeding in the
aggregate $25,000,000, exclusive of all bonded indebtedness authorized
for that purpose prior to the effective date of this amendatory Act of
1973, without the submission thereof to the electors of the school
district or city for approval.
(d). The board may incur an additional indebtedness for the purpose of
further increasing such fund and issue additional bonds therefor, from time
to time, in an amount or amounts not exceeding in the aggregate $31,000,000,
exclusive of all bonded indebtedness authorized for that purpose prior to
the effective date of this amendatory Act of 1977, without the submission
thereof to the electors of the school district or city for approval.
(e). Any bonds issued under paragraphs (a), (b), (c) or (d) of this
Section shall bear interest at a rate of not more than
the maximum rate authorized by the Bond Authorization Act, as amended at the
time of the making of the contract, and
shall mature within 20 years from date of issue. The authority herein
granted in paragraphs (a), (b), (c) and (d) shall be considered exclusive of
each other and as cumulative authority for the issuance of such bonds.
With respect to instruments for the payment of money issued under this
Section either before, on, or after the effective date of this amendatory
Act of 1989, it is and always has been the intention of the General
Assembly (i) that the Omnibus Bond Acts are and always have been supplementary
grants of
power to issue instruments in accordance with the Omnibus Bond Acts,
regardless of any provision of this Act that may appear to be or to have
been more restrictive than those Acts, (ii)
that the provisions of this Section are not a limitation on the
supplementary authority granted by the Omnibus Bond
Acts,
and (iii) that instruments issued under this
Section within the supplementary authority granted by the Omnibus Bond Acts
are not invalid
because of any provision of this Act that may appear to be or to have been
more restrictive than those Acts.
(Source: P.A. 86-4.)
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105 ILCS 5/34-32
(105 ILCS 5/34-32) (from Ch. 122, par. 34-32)
Sec. 34-32.
Resolution for bond issue-Signature-Sale.
Before issuing any bonds under Section 34-31, as amended, the board
shall adopt a resolution designating the purpose and fixing the amount of
the bonds proposed to be issued, the maturity thereof, the rate of interest
thereon and the amount of taxes to be levied annually for the purpose of
paying the principal and interest.
The bonds shall be issued in the corporate name of the school district.
They shall be signed by the president and secretary of the board, and
countersigned by the mayor and the comptroller (or city clerk if there be
no comptroller) of the city. They shall be sold by the city comptroller (or
city clerk if there be no comptroller) at not less than par upon such terms
as may be approved by the board after advertisement for bids as ordered by
and under the direction of the board and the proceeds thereof shall be
received by the city treasurer, as school treasurer, for the uses herein
provided.
(Source: Laws 1961, p. 3226.)
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105 ILCS 5/34-33
(105 ILCS 5/34-33) (from Ch. 122, par. 34-33)
Sec. 34-33.
Tax
for payment of bonds.
Before or at the time of issuing bonds under Sections 34-31 and 34-32,
as amended, the city council, upon the demand and under the direction of
the board, shall, by ordinance, provide for the collection of a direct
annual tax upon all the taxable property of the school district sufficient
to pay and discharge the principal thereof at maturity and to pay the
interest thereon as it falls due. Upon the filing in the office of the
county clerk of the county wherein the school district is located of a
certified copy of any such ordinance the county clerk shall extend the tax
therein provided for. The ordinance shall be in force upon its passage.
(Source: Laws 1961, p. 3226 .)
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105 ILCS 5/34-34
(105 ILCS 5/34-34) (from Ch. 122, par. 34-34)
Sec. 34-34.
Bond moneys set apart-Use and reimbursement of fund.
All
moneys derived from the issuance of bonds under Sections 34-31 and
34-32, or from any tax levied pursuant to Section 34-57 when received by
the city treasurer, as school treasurer, shall be set apart in the
working cash fund. The moneys in such fund shall not be regarded as
current assets available for appropriation and shall not be appropriated
by the board in the annual school budget, but in order to provide moneys
with which to meet ordinary and necessary disbursements for salaries and
other educational purposes may be transferred, in whole or in part, to
the educational purposes fund of the board and so disbursed therefrom
(a) in anticipation of the collection of any taxes lawfully levied for
educational purposes, (b) in anticipation of the receipt of moneys to be
derived from the common school fund of the State and from State
appropriations, or (c) in anticipation of such taxes, as by law now or
hereafter enacted or amended, imposed by the General Assembly of the
State of Illinois to replace revenue lost by units of local government
and school districts as a result of the abolition of ad valorem personal
property taxes, pursuant to Article IX, Section 5(c) of the Constitution
of the State of Illinois. Moneys transferred to the educational
purposes fund in anticipation of the collection of taxes shall be deemed
to have been transferred in anticipation of the collection of that part
of the taxes so levied or to be received which is in excess of the
amount or amounts thereof required to pay any warrants, and the interest
thereon, theretofore or thereafter issued under Sections 34-22 through
34-24, the amount estimated to be required to satisfy debt service and
pension or retirement obligations as set forth in Section 12 of "An Act
in relation to State revenue sharing with local government entities", approved
July 31, 1969, as amended.
Such taxes levied for educational purposes when collected
shall be applied first to the payment of any such warrants or notes and
the interest thereon and
the amount estimated to be required to satisfy debt service and pension
or retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended, and
then to the reimbursement of the working cash
fund as hereinafter provided. Upon the receipt by the city treasurer, as
school treasurer, of any taxes or other moneys, in anticipation of the
collection or receipt whereof moneys of the working cash fund have been
so transferred for disbursement, such fund shall immediately be
reimbursed therefrom until the full amount so transferred has been
re-transferred to said fund. If taxes in anticipation of the collection
of which such transfers are made are not collected in sufficient amounts
to effect a complete reimbursement of the working cash fund of the
amounts transferred from the working cash fund to the educational
purposes fund the deficiencies between the amounts thus transferred and
the amounts repaid from collections shall be general obligations of the
educational purposes fund until repaid either from taxes in anticipation
of which transfers were made or from appropriations which may be made in
annual school budgets of sums of money to apply on such general
obligations or until repaid from both the taxes in anticipation of which
such transfers were made and from appropriations which may be made in
annual school budgets of sums of money to apply on such general
obligations.
(Source: P.A. 81-1506.)
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105 ILCS 5/34-35
(105 ILCS 5/34-35) (from Ch. 122, par. 34-35)
Sec. 34-35.
Resolution for transfer from fund-Amount transferred.
Moneys shall be transferred from the working cash fund to the
educational purposes fund only upon the authority of the board, which
shall by resolution direct the school treasurer to make such transfers.
The resolution shall set forth (a) the taxes or other funds in
anticipation of the collection or receipt of which the working cash fund
is to be reimbursed, (b) the entire amount of taxes extended, or which
the board shall estimate will be extended or received, for any year in
anticipation of the collection of all or part of which such transfer is
to be made, (c) the aggregate amount of warrants or notes theretofore
issued in anticipation of the collection of such taxes under the
provisions of Sections 34-22 through 34-24 together with the amount of
interest accrued and which the board of education estimates will accrue
thereon, (d) the amount of moneys which the board of education estimates
will be derived for any year from the common school fund of the State
and from State appropriations in anticipation of the receipt of all or
part of which such transfer is to be made, (e)
the aggregate amount of receipts from taxes imposed to replace revenue
lost by units of local government and school districts as a result of the
abolition of ad valorem personal property taxes, pursuant to Article IX,
Section 5(c) of the Constitution of the State of Illinois, which the corporate
authorities estimate will be set aside for the payment of the proportionate
amount of debt service and pension or retirement obligations, as required by
Section 12 of "An Act in relation to State Revenue Sharing with local
government
entities", approved July 31, 1969, as amended, and (f)
the aggregate amount
of moneys theretofore transferred from the working cash fund to the
educational purposes fund in anticipation of the collection of such
taxes or of the receipt of such other moneys from the State. The amount
which the resolution shall direct the school treasurer so to transfer in
anticipation of the collection of taxes levied or to be received for any
year, together with the aggregate amount of such anticipation tax
warrants or notes theretofore drawn against such taxes
and the amount of
the interest accrued and estimated to accrue thereon, the amount estimated
to be required to satisfy debt service and pension or
retirement obligations, as set forth in Section 12 of "An Act in relation
to State revenue sharing with local government entities", approved July
31, 1969, as amended,
and the aggregate
amount of such transfers theretofore made in anticipation of the
collection of such taxes shall not exceed 90% of the actual or estimated
amount of such taxes extended or to be extended or to be received as set
forth in the resolution. The amount which the resolution shall direct
the school treasurer so to transfer in anticipation of the receipt of
moneys to be derived for any year from the common school fund of the
State or from any State appropriation, together with the aggregate
amount theretofore transferred in anticipation of the receipt of any
such moneys, shall not exceed the total amount which it is so estimated
will be received from such source. When moneys are available in the
working cash fund they shall be transferred to the educational purposes
fund and disbursed for the payment of salaries and other educational
expenses so as to avoid, whenever possible, the issuance of tax
anticipation warrants or notes.
(Source: P.A. 81-1506.)
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105 ILCS 5/34-36
(105 ILCS 5/34-36) (from Ch. 122, par. 34-36)
Sec. 34-36.
Violations of provisions-Liability.
Any member of the board or any officer thereof or of the city, or any
other person holding any other trust or employment under the board or
city, who is guilty of the wilful violation of any of the provisions of
Sections 34-30 through 34-35, shall be guilty of a business offense
and may be fined not exceeding $10,000 and shall forfeit his right to
his office, trust or employment and shall be removed therefrom. Any such
member, officer or person shall be liable for any sum that may be
unlawfully diverted from the working cash fund or otherwise used, to be
recovered by the board or by any taxpayer in the name and for the
benefit of the board in an appropriate civil action. A taxpayer so
suing shall file a bond for and shall be liable for all costs taxed
against the board in such suit. Nothing herein shall bar any other
remedies.
(Source: P.A. 79-1366.)
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105 ILCS 5/34-37
(105 ILCS 5/34-37) (from Ch. 122, par. 34-37)
Sec. 34-37.
Abolishment of working cash funds.
The board may abolish
its working cash fund, upon the adoption of a resolution so providing, and
directing the transfer of any balance in such fund to the educational purposes
fund, effective upon the adoption of such resolution. Thereafter, all outstanding
taxes of such board levied pursuant to Section 34-57 of this Article shall
be collected and paid into the educational fund. Any obligation incurred
by such board pursuant to Section 34-31 of this Article shall be discharged
as therein provided. Nothing contained herein shall affect the validity
of any existing obligations of the board.
(Source: P.A. 81-1221.)
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105 ILCS 5/34-38
(105 ILCS 5/34-38) (from Ch. 122, par. 34-38)
Sec. 34-38.
Re-creation of working cash fund.
Nothing in this Article prevents
a board which has abolished its working cash fund from again creating a
working cash fund in the manner provided in Section 34-30 of this Article;
provided, however that should the working cash fund be so recreated, the
board shall not thereby be authorized to issue working cash fund bonds in
an amount greater than the amount authorized at the time of abolition of
such fund, and no tax shall be levied for the recreated working cash fund
pursuant to Section 34-57 of this Article.
(Source: P.A. 81-1221.)
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105 ILCS 5/prec. Sec. 34-42
(105 ILCS 5/prec. Sec. 34-42 heading)
BUDGET AND APPROPRIATIONS
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105 ILCS 5/34-42
(105 ILCS 5/34-42) (from Ch. 122, par. 34-42)
Sec. 34-42.
Fiscal year.
The period commencing January 1, 1974 and ending
August 31, 1974 shall be a fiscal year. Beginning September 1, 1974, each
fiscal year of the board through fiscal year 1996 shall commence on September 1
of each year and end on August 31 of the following year. The period commencing
September 1, 1996 and ending June 30, 1997 shall be a fiscal year. Beginning
July 1, 1997 and thereafter, the fiscal year of the board shall commence on
July 1 of each year and end on June 30 of the following year.
(Source: P.A. 89-15, eff. 5-30-95.)
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105 ILCS 5/34-42.1
(105 ILCS 5/34-42.1)
Sec. 34-42.1. (Repealed).
(Source: P.A. 77-2734. Repealed by P.A. 94-1105, eff. 6-1-07.)
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105 ILCS 5/34-42.2
(105 ILCS 5/34-42.2)
Sec. 34-42.2. (Repealed).
(Source: P.A. 78-497. Repealed by P.A. 94-1105, eff. 6-1-07.)
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105 ILCS 5/34-43
(105 ILCS 5/34-43) (from Ch. 122, par. 34-43)
Sec. 34-43.
Adoption of budget and resolution.
The board shall, within the first 60 days of each fiscal year, adopt a
budget and pass a resolution to be termed the "annual school budget",
hereinafter called the "budget", in and by which the board, subject to the
limitations hereinafter contained, shall appropriate such sums of money as
may be required to defray all of its estimated expenses and liabilities to
be paid or incurred during the fiscal year.
The budget shall be balanced in each year within standards established by
the board, consistent with the provisions of this Article.
The budget may provide for the accumulation of funds for educational purposes
as the board may direct for capital improvements or in order to achieve a
balanced budget in a future year within the 4-year period of the board's
financial plan to begin in that budget year. The budget may also provide for a
reserve in the educational fund to ensure uninterrupted services in the event
of unfavorable budget variances.
The changes made to this Section by this amendatory Act of 1996 apply to
budgets and amended
and supplemental
budgets for fiscal years beginning in 1995 and subsequent
years.
(Source: P.A. 89-636, eff. 8-9-96.)
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105 ILCS 5/34-43a
(105 ILCS 5/34-43a)
Sec. 34-43a.
Post annual budget on web site.
The school district
shall post its current annual school budget, itemized by
receipts and
expenditures, on the
district's Internet web site. The school district shall notify the parents or
guardians of its students that the budget has been posted on the
district's web site and what the web site's address is.
(Source: P.A. 92-438, eff. 1-1-02.)
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105 ILCS 5/34-43.1
(105 ILCS 5/34-43.1) (from Ch. 122, par. 34-43.1)
Sec. 34-43.1. (A) Limitation of noninstructional costs. It is the
purpose of this Section to establish for the Board of Education and the
general superintendent of schools requirements and standards which maximize
the proportion of school district resources in direct support of
educational, program, and building maintenance and safety services for the
pupils of the district, and which correspondingly minimize the amount and
proportion of such resources associated with centralized administration,
administrative support services, and other noninstructional services.
The Board
of Education shall undertake budgetary and expenditure control actions which
limit the administrative expenditures of the Board of Education to levels,
as provided for in this Section, which represent an average of the
administrative expenses of all school districts in this State not subject
to Article 34.
(B) Certification of expenses by the State Superintendent of Education.
The State Superintendent of Education shall annually certify, on or before
May 1, to the Board of Education, for the
applicable school year, the following information:
(1) the annual expenditures of all school districts | | of the State not subject to Article 34 properly attributable to expenditure functions defined by the rules and regulations of the State Board of Education as: 2210 (Improvement of Instructional Services); 2300 (Support Services - General Administration) excluding, however, 2320 (Executive Administrative Services); 2490 (Other Support Services - School Administration); 2500 (Support Services - Business); 2600 (Support Services - Central);
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(2) the total annual expenditures of all school
| | districts not subject to Article 34 attributable to the Education Fund, the Operations, Building and Maintenance Fund, the Transportation Fund and the Illinois Municipal Retirement Fund of the several districts, as defined by the rules and regulations of the State Board of Education; and
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(3) a ratio, to be called the statewide average of
| | administrative expenditures, derived by dividing the expenditures certified pursuant to paragraph (B)(1) by the expenditures certified pursuant to paragraph (B)(2).
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For purposes of the annual certification of expenditures and ratios
required by this Section, the "applicable year" of certification shall
initially be the 1986-87 school year and, in sequent years, each
succeeding school year.
The State Superintendent of Education shall consult with the Board of
Education to ascertain whether particular expenditure items allocable to
the administrative functions enumerated in paragraph (B)(1) are
appropriately or necessarily higher in the applicable school district than
in the rest of the State due to noncomparable factors. The State
Superintendent shall also review the relevant cost proportions in other
large urban school districts. The State Superintendent shall also review
the expenditure categories in paragraph (B)(1) to ascertain whether they
contain school-level expenses. If he or she finds that adjustments to the
formula are appropriate or necessary to establish a more fair and
comparable standard for administrative cost for the Board of Education or
to exclude school-level expenses, the State Superintendent shall recommend
to the Board of Education adjusting certain costs in
determining the budget and expenditure items properly attributable to the
functions or otherwise adjust the formula.
(C) Administrative expenditure limitations. The annual budget of the
Board of Education, as adopted and implemented, and the
related annual expenditures for the school year, shall reflect a limitation
on administrative outlays as required by the following provisions, taking
into account any adjustments established by the State Superintendent of
Education: (1) the budget and expenditures of the Board of Education shall reflect
a ratio of administrative expenditures to total expenditures equal to or
less than the statewide average of administrative expenditures certified by
the State Superintendent of Education for the applicable year pursuant to
paragraph (B)(3); (2) if for any school year the budget of the Board of
Education reflects a ratio of administrative expenditures to total
expenditures which exceeds the applicable statewide average, the Board of
Education shall reduce expenditure items allocable to the administrative
functions enumerated in paragraph (B)(1) such that the Board of Education's
ratio of administrative expenditures to total expenditures is equal to or
less than the applicable statewide average ratio.
For purposes of this Section, the ratio of administrative expenditures to
the total expenditures of the Board of Education, as applied to the budget
of the Board of Education, shall mean: the budgeted expenditure items of
the Board of Education properly attributable to the expenditure functions
identified in paragraph (B)(1) divided by the total budgeted expenditures of
the Board of Education properly attributable to the Board of Education
funds corresponding to those funds identified in paragraph (B)(2),
exclusive of any monies budgeted for payment to the Public School Teachers'
Pension and Retirement System, attributable to payments due from the
General Funds of the State of Illinois.
The annual
expenditure of the Board of Education for 2320 shall be no greater than the 2320
expenditure for the immediately preceding school year or the 1988-89 school
year, whichever is less. This annual expenditure limitation may be
adjusted in each year in an amount not to exceed any change effective
during the applicable school year in salary to be paid under the collective
bargaining agreement with instructional personnel to which the Board is a
party and in benefit costs either required by law or such collective
bargaining agreement.
(D) Cost control measures. In undertaking actions to control or reduce
expenditure items necessitated by the administrative expenditure
limitations of this Section, the Board of Education shall give priority
consideration to reductions or cost controls with the least effect upon
direct services to students or instructional services for pupils, and upon
the safety and well-being of pupils, and, as applicable, with the
particular costs or functions to which the Board of Education is higher
than the statewide average.
For purposes of assuring that the cost control priorities of this
subsection (D) are met, the State Superintendent of Education shall, with
the assistance of the Board of Education, review the cost allocation
practices of the Board of Education. No position closed shall be
reopened using State or federal categorical funds.
(E) Report of Audited Information. The Board of Education shall file with the
State Board of Education the Annual Financial Report and its audit, as
required by the rules of the State Board of Education. Such reports shall
be filed no later than February 15 following the end of the school year of
the Board of Education.
As part of the required Annual Financial Report, the Board of Education
shall provide a detailed accounting of the central level, district, bureau
and department costs and personnel included within expenditure functions
included in paragraph (B)(1). The nature and detail of the reporting
required for these functions shall be prescribed by the State Board of
Education in rules and regulations. A copy of this detailed accounting
shall also be provided annually to the
public. This report shall contain a reconciliation to the board of
education's adopted budget for that fiscal year, specifically delineating
administrative functions.
If the information required under this Section is not provided by the
Board of Education in a timely manner, or is initially or subsequently
determined by the State Superintendent of Education to be incomplete or
inaccurate, the State Superintendent shall, in writing, notify the Board
of Education of reporting deficiencies. The Board of Education shall,
within 60 days of such notice, address the reporting deficiencies
identified. If the State Superintendent of Education does not receive
satisfactory response to these reporting deficiencies within 60 days, the
next payment of evidence-based funding due the Board of Education under Section 18-8.15 and all subsequent payments shall be withheld by the State
Superintendent of Education until the enumerated deficiencies have
been addressed.
Utilizing the Annual Financial Report, the State Superintendent of
Education shall certify annually on or before May 1
the Board of Education's ratio of administrative expenditures to total
expenditures. Such certification shall indicate the extent to which the
administrative expenditure ratio of the Board of Education conformed to the
limitations required in subsection (C) of this Section, taking into account
any adjustments of the limitations which may have been recommended by the
State Superintendent of Education to the Board of Education. In
deriving the administrative expenditure ratio of the Chicago Board of
Education, the State Superintendent of Education shall utilize the
definition of this ratio prescribed in subsection (C) of this Section,
except that the actual expenditures of the Board of Education shall be
substituted for budgeted expenditure items.
(Source: P.A. 102-894, eff. 5-20-22.)
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105 ILCS 5/34-44
(105 ILCS 5/34-44) (from Ch. 122, par. 34-44)
Sec. 34-44.
Budget estimates.
The budget shall set forth estimates, by
classes, of all current assets and liabilities of each fund of the board
as of the beginning of the fiscal
year, and the amounts of such assets estimated to be available for
appropriation in such year, either for expenditures or charges to be made
or incurred during such year or for liabilities unpaid at the beginning
thereof. Estimates of taxes to be received from prior levies shall be net,
after deducting amounts estimated to be sufficient to cover the loss and
cost of collecting such taxes and also deferred collections thereof and
abatements in the amount of such taxes extended or to be extended upon the
collectors' books.
Estimates of the liabilities of the respective funds shall include:
1. All final judgments, including accrued interest thereon, entered
against the board and unpaid at the beginning of such fiscal year;
2. The principal of all general obligation notes or anticipation tax
warrants and all temporary loans and all accrued interest thereon unpaid at
the beginning of such fiscal year;
3. Any amount for which the board is required to reimburse the working
cash fund from the educational purposes fund pursuant to the provisions of
Section 34-30 through 34-36 and
4. The amount of all accounts payable including estimates of audited
vouchers, participation certificates, inter fund loans and purchase orders
payable.
The budget shall also set forth detailed estimates of all accrued tax
revenues recognized for such year and of all current revenues to be
derived from sources
other than taxes, including State contributions, rents, fees, perquisites
and all other types of revenue, which will be applicable to expenditures
or charges to be made or incurred during such year.
All such estimates shall be so segregated and classified as to funds,
and in such other manner as to give effect to the requirements of law
relating to the respective purposes to which the assets and taxes and other
current revenues are applicable, so that no expenditure shall be authorized
or made for any purpose in excess of the money lawfully available therefor.
The several estimates of assets, liabilities and expenditure
requirements required or authorized to be made by this and the next
succeeding section shall be made on the basis of information known to the
board at the close of the preceding fiscal year and shall not be
invalidated or otherwise subject to attack merely because after that time
additional information is known to or could be discovered by the board that
would require a different estimate, or because the board might have amended
such estimates under any of the provisions of Section 34-47.
(Source: P.A. 84-1238.)
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105 ILCS 5/34-44.1
(105 ILCS 5/34-44.1) (from Ch. 122, par. 34-44.1)
Sec. 34-44.1.
Supplemental budget estimate.
When the value of the
taxable property in the school district is increased either by the
establishment of a new multiplier by the Department of Revenue or the
availability of a later assessment by virtue of additions
to the tax rolls or increases in assessments made by the county assessor
after the annual school budget has been adopted, the board of education
may adopt, by a 2/3 vote of the full membership of the board, a
supplemental budget to provide for the use of the added potential
revenues in an amount that shall not exceed a sum equivalent to the
product of the amount of the increase in the value of taxable property
in the district multiplied by the maximum per cent or rate of tax which
the board and the corporate authorities of the city are authorized by
law to levy for the current fiscal year for educational, building, free
textbook, agricultural science school, supervised playground outside school
hours purposes (or supervised playground outside school hours and stadia,
social center and summer swimming pool open to the public purposes, as the case
may be) or special education purposes. With respect to any supplemental budget
based upon an increase in the value of the taxable property in the school
district, such supplemental budget shall be adopted within 60 days of the date
of the final certification of the equalization rate by the Department of
Revenue to the county clerk as provided in the Property Tax Code, regardless of
whether the adoption occurs within or
after the close of the fiscal year to which the increase applies, but shall not
become effective unless approved in accordance with Article 34A of "The School
Code".
(Source: P.A. 88-670, eff. 12-2-94.)
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105 ILCS 5/34-45
(105 ILCS 5/34-45) (from Ch. 122, par. 34-45)
Sec. 34-45.
Budget appropriations.
The budget shall specify:
1. the several organization units, purposes, and | | objects for which appropriations are made;
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2. the amount appropriated for each organization
| | unit, purpose or object; and
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3. the fund from or to which each amount
| | appropriated is to be paid or charged.
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The budget shall include appropriations for:
1. all estimated current expenditures or charges to
| | be made or incurred during such fiscal year, including interest to accrue on anticipation tax warrants and temporary loans;
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2. all final judgments, including accrued interest
| | thereon, entered against the board and unpaid at the beginning of such fiscal year;
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3. any amount for which the board is required to
| | reimburse the working cash fund from the educational purposes fund pursuant to Sections 34-30 through 34-36; and
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4. all other estimated liabilities, including the
| | principal of all tax anticipation warrants and all temporary loans and all accrued interest thereon, incurred during prior years and unpaid at the beginning of such fiscal year.
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(Source: P.A. 84-1238 .)
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